By Martha Agas
The Solid Minerals Development Fund (SMDF) says only a strong financing framework can unlock Nigeria’s vast mineral wealth and drive its national development.
SMDF`s Executive Director, Hajiya Fatima Shinkafi stated this at a workshop themed ‘Building a Sustainable Finance Framework for Nigeria’, on Tuesday in Abuja.
The workshop was organised by the Ore Reserve Development Forum (ORDF), in partnership with SMDF for stakeholders, including miners, financial institutions, government agencies, regulators and industry experts.
Shinkafi, represented by Dr Martina Ananaba, Head of the Minerals and Projects Development Department at SMDF, said that the inaugural workshop marked a critical step toward strengthening and expanding financing frameworks in mining operations.
“Through this partnership, ORDF and SMDF are working to build on existing efforts.
“Bridging gaps between geological potential and bankable projects and establishing enhanced standards, systems, and pathways to attract both local and global capital to Nigeria’s mining sector, “ she said.
Shinkafi said that even though Nigeria had strategic and precious minerals in commercial quantities, a strong financing framework was needed to fully harness this potential.
The executive director said that the Renewed Hope Agenda was prioritising industrialisation and local content development, which were key catalysts for economic diversification that could position mining as a new economic pillar.
According to her, mining finance matters because it is the mechanism that converts geological potential into economic performance into jobs, revenue, industrial capacity and prosperity.
“ Without structured finance, even the most promising mineral deposits remain unexploited, contributing nothing to national development, “ Shinkafi said.
She said the mining sector faced a fundamental credibility and capacity gap, as many mining operations remained trapped in artisanal methods, using crude tools and manual processes, which made them unsuitable for formal financing.
“The real challenge is not simply access to capital, it is the lack of bankable projects.
“Investors lack confidence because geological reporting is inconsistent, ore reserve classification does not meet international standards, and many operations lack the technical sophistication to absorb structured finance.
“Traditional financial institutions struggle to evaluate mining projects due to unfamiliarity with the sector’s technical requirements, risk profiles, and development timelines
“ While many miners lack the capacity and documentation to present bankable proposals.
“The solution lies in building transparent systems standardised reporting, credible data, technical capacity building, and clear financing frameworks that simultaneously upgrade operational standards and unlock capital flow, “ she said.
Shinkafi said the workshop aimed to co-design a practical Mining Finance Framework that establishes clear reporting standards, defines appropriate financing instruments for each project stage and creates enabling policy environments.
In his remarks, the Chairman of ORDF, Malami Saidu, said the forum was aimed at supporting junior mining and exploration companies in raising their standards to globally acceptable levels.
Saidu said that ORDF aimed to strengthen the mineral development value chain, with exploration forming the foundation of that chain.
“Our focus here is on the most important stage of mineral development, exploration. It is not only expensive but extremely risky, “ he said.
Saidu said the workshop sessions would serve as a strategic platform to align with internationally benchmarked reserve classification systems, optimised financing structures, and the institutional collaboration needed to unlock bankable mineral projects
`Participants will engage in data driven dialogue, cross sector knowledge exchange and policy focused conversations designed to shape the next decade of Nigeria`s mineral development, “ he said (ephemeralnews.com.ng)
